Don’t buy all that talk about oil shooting back up to $90 a barrel. That’s the message from bond king Jeffrey Gundlach.
“I bet a great deal of money that oil is not going to end the year at $90,” Gundlach said at ETF.com’s Inside ETF Conference.
f would be easy to dismiss the comments from Gundlach, founder of DoubleLine Capital, just because he’s a bond guy. But he correctly predicted back in October that oil would tumble to $70 a barrel. He was also early to note Saudi Arabia may actually want low prices to pressure rivals like Iran.
Where’s oil going next? Some believe oil could quickly rebound from its current level of $45. T. Boone Pickens, the oil tycoon, told CNBC in late December that Brent crude (the global benchmark) would zoom to $90 to $100 in 12 to 18 months. Last week Pickens said crude could hit $80 by year end.
“I just think he’s wrong,” Gundlach said. “He knows more about energy than I do, but I know a lot about markets.”
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